02:44 PM EDT, 06/21/2024 (MT Newswires) -- Fiera Capital ( FRRPF ) said Friday that several members of its senior management and board of directors acquired the 6.8% stake put up for sale by the Federation des caisses Desjardins du Quebec in April.

The transaction, which includes no outside buyers, represents 7.25 million Class B voting shares and Class A subordinate voting shares for a total purchase price of $53 million or $7.25/share. Part of the purchase was financed through a $20 million credit facility which is guaranteed by Fiera Capital ( FRRPF ). Federation des caisses Desjardins du Quebec remains a Fiera client.

"Overall, we see several positives from the transaction," writes National Bank's Jaeme Gloyn.

Fiera's management is buying the ~7.3 million shares at $7.25/share, a 7.1% premium to yesterday's close, reflecting management's confidence in the business.

The transaction restores ownership stability as Jean-Guy Desjardins will maintain control over ~21% of shares outstanding and thus majority board member election rights and effective control over the company. (The Class B shares for sale held the right to elect six directors to Fiera's nine-director board.)

The Globe and Mail reported that several members of Fiera's senior management team and board were significant participants in the transaction. "We believe the increased ownership stakes will result in enhanced alignment at FSZ," Gloyn adds.

National Bank is Sector Perform on Fiera Capital ( FRRPF ) with a $7 price target.

Price: 7.19, Change: +0.42, Percent Change: +6.20